2 1 1_marketing objectives and strategy

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1. The definition of Marketing
2. Marketing Objectives
3. Marketing strategy to reach those objectives
a. Niche
b. Mass
4. Advantages and Disadvantages of niche and mass marketing

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2 1 1_marketing objectives and strategy

  1. 1. Topic 1: Lesson 1Quazi Nafiul Islam Marketing Objectives and StrategyLearning Objectives: 1. The definition of Marketing 2. Marketing Objectives 3. Marketing strategy to reach those objectives a. Niche b. Mass 4. Advantages and Disadvantages of niche and mass marketing 1. The definition of marketingMarketing is the management process that identifies, anticipates and satisfies customer requirementsprofitably. 2. Marketing objectives • Essentially, these are the marketing goals that the business is trying to achieve Growth and Profitability Gaining and Consumer maintaining satisfaction market share Marketing Objectives Consumer Product awareness differentiation 1 Product Product innovation Introduction
  2. 2. Quazi Nafiul IslamGrowth and Profitability • The increase in sales, revenue and profit through marketing • The business may increase revenue through: o Increase in prices o Selling more products • Easy-jet and Ryaniar both promoted themselves as cheap low cost travel.Gaining and retaining market share • A business may launch a new product and for it to penetrate the market, which will likely require lots of promotion such as promotional pricing, adverts etc. • To retain long term sales, the business may use extension strategies such as updating design, re-introduce it with new packaging or change the ingredients. Businesses could also target it to a market, for example energy bars that are tailored for sport athletes o For example, Toyota Corolla has been a car that Toyota sells for decades, it keeps on changing the design and features etc. to retain interest in its carProduct differentiation • Essentially making the product seem different from other alternative products through marketing. This may be done through: o Changing price o Packaging o Advertising o Changing retailer or the place where the product is sold, for example selling it on the net and not through the retailer o Changing the name to something more appealing for example, changing the name of an energy bar from ‘power’ to ‘BUZZ’Product introduction • Product introduction is basically the goal of launching new products into the market and therefore increasing product range. o Some businesses simply launch new product regularly o Market research should indicate good prospects for this product 2 • For example Ford recently launched the Ford Mondeo to replace the Ford Sierra
  3. 3. Quazi Nafiul Islam • Another example, Chocolate companies producing just chocolate bars may now start to produce caramel and chocolate bars as a new product, thus increasing the range of products that they sell. • This may increase enthusiasm in the product • The business is selling more products to different consumers, may cause an increase in revenue. • Perhaps more sales, as it may be more appealing to consumersProduct Innovation • Introducing a brand new product into the market, which no one has introduced before. • For example a new type of medicineConsumer knowledge • Basically raising consumer awareness o Through promotion o Adverts etc.Consumer Satisfaction • Basically attain brand loyalty Figure 1: Blu-Ray® was made by SONY®, it revolutionized movies because it was the first form of optical media that could hold up to 50 GBs on a double layer and 25 GB on a single layer. 3
  4. 4. Quazi Nafiul Islam 2. Marketing StrategyMarketing Strategy can be divided into two types, for now, but strategy is a far bigger topic. The twotypes: • Niche Marketing • Mass MarketingNiche Marketing • The marketing of a product to a small section of the market • Advantages o Less competition, as it is a small market o Products can be tailor made to meet consumer needs e.g. wedding cakes. So generally high level of consumer satisfaction o Less likely to be left with out-dated stock as fewer units are produced • Disadvantages o There are fewer potential customers, so small market size o Unlikely to have high market growth o Profits are likely to be lower while prices are higher, as there are lower sales o If too successful, the niche may fall prey to larger businessesMass marketing • Advantages o Can generally benefit from economies of scale, see Dave Hall Unit 89 o Less risky as the business is not dependent upon one small market segment o Sales revenues are usually higher, as the business is selling to a larger market • Disadvantages o Increased competition, as there are more companies in mass markets o Difficult to appeal to individual consumers, perhaps lower consumer satisfaction o Fixed capital costs are usually high due to the need for large factories and expensive machinery 4

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